The centre-right government is led by Bjarni Benediktsson, who heads the conservative Independence Party. He was previously finance minister.

Close EU ties

The prime minister's coalition partners are Restoration and centrist Bright Future, whose leader Ottarr Proppe is a former punk rocker.

Tuesday's coalition deal followed weeks of political wrangling after the 29 October general election.

Iceland is already deeply integrated with the EU - it is a member of the Schengen passport-free zone and is in the single market, though its agriculture and fisheries are excluded.

Iceland, Norway and Liechtenstein are in both the European Free Trade Association (EFTA) and the European Economic Area (EEA).

Iceland's status means it could quickly fulfil the requirements of EU membership - unlike the Balkan candidates and Turkey.

Correction, 16 January 2017: This story has been amended to make clear that a vote will be held only if the EU issue is raised in parliament. Figures on Althingi seats have also been added for further clarity.